The State Bar of California Board of Trustees marked a leadership transition at its September 21–22 meeting, as Board Chair Brandon Stallings, Vice Chair José Cisneros, and new Trustee Mary Huser were sworn into office. Stallings was the Board’s previous Vice Chair, and Cisneros, appointed to the Board by Governor Gavin Newsom, chaired the committee that helped create the Client Trust Account Protection Program, which requires licensees to report to the State Bar on their client trust accounts. All three Trustees were appointed to their new roles by the California Supreme Court. Stallings takes the helm of the Board as the State Bar finds itself in need of funding, as a 2023 California State Audit concluded. The State Bar’s annual fee bill, Senate Bill 40, recently adopted by the California Legislature and awaiting Governor Newsom’s signature, includes no increase in attorney licensing fees next year, but allows transfers from two dedicated reserve funds to close $8 million of a projected $16.9 million structural deficit in 2024. SB 40 paves the way for a possible licensing fee increase in 2025 by requiring the State Bar to report in detail on its funding needs by April 1, 2024.
“The State Bar is at an unprecedented turning point that has resulted in greater transparency and accountability,” said Stallings. “These successes would not be possible without effective leadership and partnerships at all levels: the California Supreme Court and the Legislature, the Board of Trustees, and State Bar leadership and staff. We are all working together to move forward and improve this agency, and we will carry forward the momentum realized under previous Board leadership. I look forward to serving as Chair of this Board, which I know is committed to advancing the progress we’ve made in recent years.”
In other actions at its September meeting, the Board:
Approved Admissions fee increases
The Admissions program has been running a structural deficit for years. Many fees have not increased since 2016. The Board approved increases for most admissions fees but directed staff to revise downward and recirculate for public comment the anticipated fee increases for California-accredited law schools.
Approved circulating for public comment a proposed alternative pathway to the bar exam After accepting the final report of the Blue Ribbon Commission on the Future of the California Bar Exam (BRC) in May, the Board directed staff to ask former commission members supportive of a bar exam alternative to develop a proposal for this pathway. A working group of former BRC members developed a proposal for a Portfolio Bar Examination. Candidates who choose this option would obtain provisional licenses and work under supervision for up to six months. During that time, they would assemble portfolios of work product to be assessed by independent graders trained by the State Bar. Candidates who achieved passing scores on their portfolios would not have to take the bar exam but would have to fulfill all other requirements for admission to the State Bar. The proposal will circulate for 30 days of public comment before final review by the Board. If approved, the proposal would then go to the California Supreme Court.
Discussed diversion programs The State Bar is exploring several methods to divert minor attorney misconduct issues from the formal disciplinary program. SB 40 calls on the Board to recommend, by April 1, 2024, a formal disciplinary diversion program for attorneys accused of minor violations of the Rules of Professional Conduct. Plans underway:
- The Office of Chief Trial Counsel (OCTC) will pilot a plan to divert up to 20 percent of disciplinary complaints into a speedier resolution path designed to provide preventative assistance to avoid future complaints. For complaints meeting certain criteria, OCTC will offer attorneys the option to enter into diversion agreements that would include education and other conditions addressing the issues that gave rise to the complaints.
- For complaints that involve fee disputes, under exploration is a voluntary mediation component to augment the existing Mandatory Fee Arbitration Program. Mediation would provide parties with an additional option for resolving fee disputes through a faster and less formal process.
- For complaints that involve communication issues and return of client files, a proposed program would assist those having these issues with their attorneys without having to file a formal complaint. To receive assistance, members of the publics would submit a service request for help to the Office of the Public Trust Liaison.
The Board endorsed a plan to add new demographic content to the Annual Discipline Report, to be published October 31, 2023, specifically, tables that describe the gender and racial/ethnic distribution of disciplined attorneys in comparison to the active attorney population. This addition to the statutory report is in keeping with the State Bar’s commitment to diversity, equity, and inclusion and is consistent with the 2022–2027 Strategic Plan. The State Bar plans to update its study of racial disparities in the attorney discipline system in 2024.
Heard update on Complaint Review Unit
The Board heard about efforts to manage the workload in complaint review cases. When OCTC closes a complaint against an attorney without seeking discipline, complainants may request a second look by the Complaint Review Unit in the Office of General Counsel (OGC). Being separate from OCTC helps ensure the independence of the review process. The pending complaint review caseload hovers around 1,000, and average processing time is approximately nine months. From October 2022 to June 2023, OGC hired outside counsel to handle about half of these cases in an effort to pare down the backlog, but ran out of funding. Given current resource limits, the backlog is projected to almost double over the next 12 months.
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